UK inflation sticks at 3% as cost of living squeeze continues business


And inflation is becoming an increasingly home grown problem, rather than simply being driven by higher import costs.

Stephen Clarke, Senior Economic Analyst at the Resolution Foundation, explains:

While the price of oil is something to watch in future as it pushes up input prices for UK manufacturers, the effect of the post-Brexit pound devaluation is waning slightly with items that are less import-intensive driving the recent rise in inflation.

Prices of recreational and cultural goods, such as trips to the cinema, rose at their fastest rate for 8 years.

Eagle-eyed readers will note that Resolution are using ‘CPIH’, a measure of inflation which includes owner occupiers’ housing costs. It stuck at 2.7% in January

 The squeeze on real earnings will continue